We’ve heard it dozens and dozens of times over the past two years as we have completed over 30 interviews with buyers, sellers, and traders of recycled fiber in North America – markets are frustrated by the lack of actionable information on the US market.
Specifically, we have heard:
- Existing price indices do not reflect underlying supply and demand
- Benchmarks do not accurately reflect differences in geography, product quality, or format
- Current conditions do not enable reliable benchmarking of one’s own selling or buying activities
When you compare a reference price to your own transaction records, side by side in black and white, and see wide discrepancies, it’s easy to lose faith in the quality of the data in the index. And it is extremely difficult to make confident business decisions that could have expensive consequences.
These unexpected movements can happen because the index being used based on survey-based methods is naturally confronted with the risk of biases. The metrics used to measure the market that seek to predict future prices based on industry chatter tend to exacerbate artificial volatility – and the ramifications of this type of volatility are serious.
The best way to reduce uncertainty with price discovery is to build an index based on actual market transactions. The OCC market is similar to the complementary feedstocks we’ve worked with – and during our experience, we’ve seen the benefits of reliable data based on actual market transactions in these markets. Prior to the introduction of our transaction-based indices, log markets were highly volatile and uncertain in ways that could not be explained. Our index – now capturing millions of transactions per year – solved this problem.
Introducing Recycled Fiber 360
Buyers and sellers of OCC and other recycled fiber products want reliable, actionable data. Fisher International and Forest2Market, two ResourceWise companies, have collaborated on a transaction-based recycled fiber price benchmark built specifically to help the industry reduce volatility and uncertainty – Recycled Fiber 360.
Fisher International has more than 30 years of experience in pulp and paper business intelligence, with detailed data on every pulp and paper mill in the world, in addition to best-in-class cost modeling and forecasting. Forest2Market, the creator of the timber price benchmark for pulpwood mentioned above, has more than 20 years of experience in gathering, securing, anonymizing and reporting transaction data in the forestry vertical.
Together, we have introduced a transaction-based recycled fiber price benchmark that offers:
- Index breakdowns by region and product—quickly see the exact pricing data you need when you need, delivered or FOB.
- Historical price trends—track and understand market movements over time to correlate price changes with industry events.
- Segmentation of apparent contract vs spot to understand market dynamics and get insight into where the market is headed.
- Compare individual mills within your organization and to other facilities purchasing recovered fiber within the same geographic region.
To ensure that recycled fiber markets are both competitive and efficient, owners and managers need to be able to make fact-based decisions that protect and improve facility margins. The more confidence decision makers have in the data they use, the more confidence that can have in their decisions. And when decision makers have more confidence in their decisions, they can take aggressive action to spur improved performance and profitable growth.
For a more detailed look at how our Recycled Fiber 360 benchmark can help your company access dependable, vital data, watch the video below.
About ResourceWise:
ResourceWise was founded in 2021 and now serves as the parent brand of four companies — Forest2Market, Fisher International, Tecnon OrbiChem and Wood Resources International. The companies in the ResourceWise portfolio focus on forest products, pulp & paper and chemicals — natural-resource-based industries. For more than two decades, our legacy brands have been dedicated to helping our customers make exponentially better decisions by providing them with the most accurate data and analytics available to our markets, which we supplement with high-value strategic consulting. For more information, www.resourcewise.com.
About Fisher International
Fisher International offers unparalleled expertise and solutions for suppliers, producers and investors that inspires better performance in the capital-intensive pulp and paper industry. For over 30 years, Fisher International has helped companies across all aspects of the global pulp and paper industry be more purposeful in deciding how to best utilize their assets to gain tremendous advantages in efficiency, productivity and profitability. We help clients leverage their distinct strengths, augmented by the guidance surfaced through our rich data, analytics and expertise, to develop unique solutions their competitors can't imitate. Our highly detailed data helps clients make the best of their resources to forge a successful path forward. For more information, www.fisheri.com.
Source: Fisher International
